20002 Federal Register / Vol. 72, No. 76 / Friday, April 20, 2007 / Notices 

13 In approving this proposed rule change, the 

Commission has considered the proposed rule’s 

impact on efficiency, competition, and capital 

formation. 15 U.S.C. 78c(f). 

14 15 U.S.C. 78f. 

15 15 U.S.C. 78f(b)(5). 

16See ISE Rules 412 and 414. 

17See ISE Rule 1202. 

18 17 CFR 242.600(b)(47). 

19 17 CFR 240.19b–4(e). 

20 15 U.S.C. 78s(b)(2). 

21See Securities Exchange Act Release No. 55547 

(March 28, 2007), 72 FR 16388 (April 4, 2007) (SR–

Amex–2006–110). 

22 15 U.S.C. 78s(b)(5). 

23 15 U.S.C. 78s(b)(2). 

24 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3 15 U.S.C. 78s(b)(3)(A)(ii). 

4 17 CFR 240.19b–4(f)(2). 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for inspection and copying in 

the Commission’s Public Reference 

Room. Copies of the filing also will be 

available for inspection and copying at 

the principal office of the ISE. All 

comments received will be posted 

without change; the Commission does 

not edit personal identifying 

information from submissions. You 

should submit only information that 

you wish to make available publicly. All 

submissions should refer to File 

Number SR–ISE–2007–16 and should be 

submitted on or before May 11, 2007. 

IV. Commission Findings and 

Accelerated Approval 

After careful consideration, the 

Commission finds that the proposed 

rule change is consistent with the 

requirements of the Act and the rules 

and regulations thereunder applicable to 

a national securities exchange 13 and, in 

particular, the requirements of Section 6 

of the Act.14 Specifically, the 

Commission finds that the proposed 

rule change is consistent with Section 

6(b)(5) of the Act,15 which requires, 

among other things, that the rules of a 

national securities exchange be 

designed to promote just and equitable 

principles of trade, remove 

impediments to and perfect the 

mechanism of a free and open market in 

a manner consistent with the protection 

of investors and the public interest. 

Surveillance 

The Commission notes that Exchange 

has represented that it has an adequate 

surveillance program in place for 

options based on Commodity Pool ETFs. 

The Exchange may obtain trading 

information via the ISG from other 

exchanges who are members or affiliates 

of the ISG and has entered into 

numerous comprehensive surveillance 

sharing agreements with various 

commodity futures exchanges 

worldwide. Prior to listing and trading 

options on Commodity Pool ETFs, the 

Exchange represented that it will either 

have the ability to obtain specific 

trading information via ISG or through 

a comprehensive surveillance sharing 

agreement with the exchange or 

exchanges where the particular 

commodity futures and/or options on 

commodity futures are traded. In 

addition, the Exchange represented that 

the addition of Commodity Pool ETF 

options will not have any effect on the 

rules pertaining to position and exercise 

limits 16 or margin.17

Listing and Trading of Options on 

Commodity Pool ETFs 

The Commission notes that, pursuant 

to the proposed rule change, a 

Commodity Pool ETF will be subject to 

the provisions of ISE Rules 502 and 503, 

as applicable. These provisions include 

requirements regarding initial and 

continued listing standards, the 

creation/redemption process for 

Commodity Pool ETFs, and trading 

halts. All Commodity Pool ETFs must 

be traded through a national securities 

exchange or through the facilities of a 

national securities association, and must 

be ‘‘NMS stock’’ as defined under Rule 

600 of Regulation NMS. 18

The Commission believes that this 

proposal is necessary to enable the 

Exchange to list and trade options on an 

expanding range of Commodity Pool 

ETFs currently approved for trading and 

that it is reasonable to expect other 

types of Commodity Pool ETFs to be 

introduced for trading in the future. 

This proposal would help ensure that 

the Exchange will be able to list options 

on Commodity Pool ETFs that have 

been recently launched as well as any 

other similar Commodity Pool ETFs that 

may be listed and traded in the future 19

thereby offering investors greater option 

choices. 

Acceleration 

The Commission finds good cause, 

pursuant to Section 19(b)(2) of the 

Act,20 for approving the proposed rule 

change, as amended, prior to the 

thirtieth day after the date of 

publication of notice in the Federal 

Register. The Commission notes that the 

proposal is consistent with the 

Exchange’s listing and trading standards 

in ISE Rules 502 and 503, and the 

Commission has recently approved a 

similar proposal, after publishing it for 

comment and receiving no comments.21

Therefore, the Commission does not 

believe that the proposed rule change, 

as amended, raises novel regulatory 

issues. Consequently, the Commission 

believes that it is appropriate to permit 

investors to benefit from the flexibility 

afforded by trading these products as 

soon as possible. 

Accordingly, the Commission finds 

that there is good cause, consistent with 

Section 6(b)(5) of the Act,22 to approve 

the proposal, as amended, on an 

accelerated basis. 

V. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,23 that the 

proposed rule change (SR–ISE–2007–

16), as modified by Amendment No. 1, 

be, and is hereby approved on an 

accelerated basis. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.24

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–7489 Filed 4–19–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55634; File No. SR–

NASDAQ–2007–036] 

Self-Regulatory Organizations; the 

NASDAQ Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Modify 

Pricing for Nasdaq Members Using the 

Nasdaq Market Center 

April 16, 2007. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 

(‘‘Act’’) 1 and Rule 19b–4 thereunder,2

notice is hereby given that on March 30, 

2007, The NASDAQ Stock Market LLC 

(‘‘Nasdaq’’) filed with the Securities and 

Exchange Commission (‘‘Commission’’) 

the proposed rule change as described 

in Items I, II, and III below, which Items 

have been substantially prepared by 

Nasdaq. Pursuant to Section 

19(b)(3)(A)(ii) of the Act 3 and Rule 19b–

4(f)(2) thereunder,4 Nasdaq has 

designated this proposal as establishing 

or changing a due, fee, or other charge, 

which renders the proposed rule change 

effective immediately upon filing. 

The Commission is publishing this 

notice to solicit comments on the 

proposed rule change from interested 

persons. 


sroberts on PROD1PC70 with NOTICES
Federal Register / Vol. 72, No. 76 / Friday, April 20, 2007 / Notices 20003 

5Changes are marked to the rule text that appears 

in the electronic Nasdaq Manual found at http:// 

nasdaq.complinet.com, as amended by Securities 

Exchange Act Release No. 55576 (April 3, 2007), 72 

FR 17969 (April 10, 2007) (SR–NASDAQ–2007–

026), on an immediately effective basis. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

Nasdaq proposes to modify the 

pricing for Nasdaq members using the 

Nasdaq Market Center. Nasdaq will 

implement this rule change on April 2, 

2007. 

The text of the proposed rule change 

is below. Proposed new language is 

italicized.5

* * * * * 

7018. Nasdaq Market Center Order 

Execution and Routing 

(a) The following charges shall apply 

to the use of the order execution and 

routing services of the Nasdaq Market 

Center by members for all securities that 

it trades. 

FEES FOR ORDER EXECUTION IN THE NASDAQ MARKET CENTER; FEES FOR ROUTING OF ORDERS IN ALL SECURITIES TO

VENUES OTHER THAN THE NEW YORK STOCK EXCHANGE (‘‘NYSE’’); AND FEES FOR ROUTING ORDERS IN EXCHANGE-TRADED FUNDS TO NYSE 

Charge to member entering order that executes in the Nasdaq Market 

Center or attempts to execute in the Nasdaq Market Center prior to 

routing: 

Members with an average daily volume through the Nasdaq Market Center in all securities during the month of (i) more than 35 

million shares of liquidity provided, and (ii) more than 55 million 

shares of liquidity accessed and/or routed; or members with an 

average daily volume through the Nasdaq Market Center in all 

securities during the month of (i) more than 25 million shares of 

liquidity provided, and (ii) more than 65 million shares of liquidity 

accessed and/or routed.

$0.0026 per share executed for securities priced at $1 or more per 

share. 

0.1% of the total transaction cost for executions in the Nasdaq Market 

Center of securities priced at less than $1 per share. 

0.3% of the total transaction cost for routed orders in securities priced 

at less than $1 per share. 

Members with an average daily volume through the Nasdaq Market Center in all securities during the month of (i) more than 20 

million shares of liquidity provided, and (ii) more than 35 million 

shares of liquidity accessed and/or routed.

$0.0028 per share executed for securities priced at $1 or more per 

share. 

0.1% of the total transaction cost for executions in the Nasdaq Market 

Center of securities priced at less than $1 per share. 

0.3% of the total transaction cost for routed orders in securities priced 

at less than $1 per share. 

Other members ................................................................................. $0.0030 per share executed for securities priced at $1 or more per 

share. 

0.1% of the total transaction cost for executions in the Nasdaq Market 

Center of securities priced at less than $1 per share. 

0.3% of the total transaction cost for routed orders in securities priced 

at less than $1 per share. 

Charge to member entering order that does not attempt to execute 

in the Nasdaq Market Center prior to routing.

$0.0035 per share executed for a Directed Intermarket Sweep Order 

for securities priced at $1 or more per share. 

$0.0030 per share executed for other orders for securities priced at $1 

or more per share. 

0.3% of the total transaction cost for routed orders in securities priced 

at less than $1 per share. 

Surcharge for order routed to the American Stock Exchange and 

charged a fee by the specialist.

$0.01 per share executed. 

Credit to member providing liquidity through the Nasdaq Market Center: 

Members with an average daily volume through the Nasdaq Market Center in all securities during the month of more than 35 million shares of liquidity provided.$0.0025 per share executed (or $0, in the case of executions against 

Quotes/Orders in the Nasdaq Market Center at less than $1.00 per 

share). 

Members with an average daily volume through the Nasdaq Market Center in all securities during the month of more than 20 million shares of liquidity provided.$0.0022 per share executed (or $0, in the case of executions against 

Quotes/Orders in the Nasdaq Market Center at less than $1.00 per 

share). 

Other members ................................................................................. $0.0020 per share executed (or $0, in the case of executions against 

Quotes/Orders in the Nasdaq Market Center at less than $1.00 per 

share). 

FEES FOR ROUTING ORDERS IN SECURITIES OTHER THAN EXCHANGE-TRADED FUNDS TO NYSE 

Order that attempts to execute in the Nasdaq Market Center prior to 

routing and being executed at NYSE.

$0.000225 per share executed for securities priced at $1 or more per 

share. 

0.3% of the total transaction cost for routed orders in securities priced 

at less than $1 per share. 

Order that does not attempt to execute in the Nasdaq Market Center 

prior to routing and being executed at NYSE.

$0.0035 per share executed for a Directed Intermarket Sweep Order 

for securities priced at $1 or more per share. 

$0.000275 per share executed for other orders for securities priced at 

$1 or more per share. 

0.3% of the total transaction cost for routed orders in securities priced 

at less than $1 per share. 

Order that is routed to NYSE and then routed to another venue for 

execution.

A pass-through of any routing fees charged to Nasdaq by NYSE. 


sroberts on PROD1PC70 with NOTICES
20004 Federal Register / Vol. 72, No. 76 / Friday, April 20, 2007 / Notices 

6See Securities Exchange Act Release No. 55405 

(March 6, 2007), 72 FR 11069 (March 12, 2007). 

7 17 CFR 242.610 and 242.611. 

8 15 U.S.C. 78f. 

9 15 U.S.C. 78f(6)(4). 

10 15 U.S.C. 78s(b)(3)(A)(ii). 

11 17 C FR 240.19b–4(f)(2). 

12 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3 15 U.S.C. 78s(b)(3)(A). 

4 17 CFR 240.19b–4(f)(2). 

* * * * * 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, 

Nasdaq included statements concerning 

the purpose of, and basis for, the 

proposed rule change and discussed any 

comments it received on the proposed 

rule change. The text of these statements 

may be examined at the places specified 

in Item IV below. Nasdaq has prepared 

summaries, set forth in Sections A, B, 

and C below, of the most significant 

aspects of such statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

Nasdaq is establishing a fee of $0.0035 

per share executed for orders that are 

designated as Directed Intermarket 

Sweep Orders (unless the order is for a 

security priced under $1, in which case 

the fee is 0.3% of the transaction value). 

As described in SR–NASDAQ–2007–

020,6 a Directed Order allows a market 

participant to enter an order into 

Nasdaq that is designated for routing to 

another exchange without first checking 

the Nasdaq book. By designating a 

Directed Order as an Intermarket Sweep 

Order, the market participant entering 

the order represents that it is complying 

with the requirements of Regulation 

NMS Rules 610 and 611.7 Because these 

orders bypass the Nasdaq book, and 

because Nasdaq will incur costs for 

post-trade surveillance of members’

compliance with these rules, Nasdaq 

believes that an increased routing fee of 

$0.0035 is warranted. 

2. Statutory Basis 

Nasdaq believes that the proposed 

rule change is consistent with the 

provisions of Section 6 of the Act,8 in 

general, and with Section 6(b)(4) of the 

Act,9 in particular, in that it provides for 

the equitable allocation of reasonable 

dues, fees, and other charges among 

members and issuers and other persons 

using any facility or system which 

Nasdaq operates or controls. Nasdaq 

believes that an increased fee for 

Directed Intermarket Sweep Orders is 

appropriate in light of their special 

characteristics. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

Nasdaq does not believe that the 

proposed rule change will result in any 

burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

Written comments were neither 

solicited nor received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing rule change has become 

effective pursuant to Section 

19(b)(3)(A)(ii) of the Act 10 and 

subparagraph (f)(2) of Rule 19b–4 

thereunder because it establishes or 

changes a due, fee, or other charge.11 At 

any time within 60 days of the filing of 

the proposed rule change, the 

Commission may summarily abrogate 

such rule change if it appears to the 

Commission that such action is 

necessary or appropriate in the public 

interest, for the protection of investors, 

or otherwise in furtherance of the 

purposes of the Act. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s Internet 

comment form (http://www.sec.gov/ 

rules/sro.shtml); or 

• Send an e-mail to rulecomments@sec.gov. Please include File 

Number SR–NASDAQ–2007–036 on the 

subject line. 

Paper Comments: 

• Send paper comments in triplicate 

to Nancy M. Morris, Secretary, 

Securities and Exchange Commission, 

100 F Street, NE., Washington, DC 

20549–1090. 

All submissions should refer to File 

Number SR–NASDAQ–2007–036. This 

file number should be included on the 

subject line if e-mail is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commission’s 

Internet Web site (http://www.sec.gov/ 

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for inspection and copying in 

the Commission’s Public Reference 

Room. Copies of such filing also will be 

available for inspection and copying at 

the principal offices of the Exchange. 

All comments received will be posted 

without change; the Commission does 

not edit personal identifying 

information from submissions. You 

should submit only information that 

you wish to make available publicly. 

All submissions should refer to File 

Number SR–NASDAQ–2007–036 and 

should be submitted on or before May 

11, 2007. 

For the Commission, by the Division of 

Market Regulation, pursuant to 

delegated authority.12

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–7485 Filed 4–19–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55633; File No. SR–

NASDAQ–2007–041] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change Relating to 

Fees of Other Market Centers Related 

to Clearly Erroneous Rulings 

April 16, 2007. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 

(‘‘Act’’) 1 and Rule 19b–4 thereunder,2

notice is hereby given that on April 10, 

2007, The NASDAQ Stock Market LLC 

(‘‘Nasdaq’’) filed with the Securities and 

Exchange Commission (‘‘Commission’’) 

the proposed rule change as described 

in Items I, II, and III below, which Items 

have been prepared by Nasdaq. Nasdaq 

submitted the proposed rule change 

under Section 19(b)(3)(A) of the Act 3

and Rule 19b–4(f)(2) thereunder,4 which 


sroberts on PROD1PC70 with NOTICES